If you want to become involved in any type of investing – especially the stock market – then it’s a good idea these days to go through an online brokerage company. Since they are not full-service, their rates are typically lower than what the average broker charges. The discount firms offer recommendations on low-cost stocks and other affordable investment opportunities and won’t charge a fortune for commissions on trades. Here are a few of the best discount brokerage firms for you to look into:
This is a very strong option for more advanced, frequent traders. New traders might not really like the inactivity fees and high balance requirements, so only consider this discount firm if you already have a bit of experience. The fees are only $0.005 per share and clients can trade using more than 20 currencies on 120 markets in 30+ countries. The marketplace is searchable and connects users to a variety of services, including hedge funds, advisors, business developers, research analysts, and more.
The way this discount brokerage company works is that clients do not have to pay any trading commissions. Instead, you would have to pay a monthly fee up front for the “Gold Service”. This gives you access to a lot of margin loans. To ensure you get the best possible price, the orders are not routed. Both the mobile app and website are very easy to use – even for beginners.
This is one of the best discount brokerage firms for high-volume traders who have some experience. It is not uncommon for Lightspeed traders to trade more than 1,000 times per year. It also allows its clients to trade through both its 3rd party and in-house trading platforms. However, the Lightspeed Trader platform costs $100 each month for the software fee. Commission spending applies towards this monthly fee.
This is a versatile trading platform for everyone, from beginners to active traders. It does have higher-than-average commissions when compared to the other best discount brokerage firms, but to make up for it, it provides some superior research and tools to help increase the chances of success. The service team is second to none as well. There are knowledgeable, licensed reps that are available via email, chat, phone, and in-person for support.
If there is one company that truly deserves to be among the “best discount brokerage firms”, it’s Zacks Trade. The firm offers competitive rates and innovative platforms. It allows members to find stocks and EFT Trades from $3 (1 cent per share). If you switch to this firm, it will even pay the transfer fee (up to $150) on full account transfers ($5000 minimum). You’ll also get versatile trading options and a feature-rich workstation to optimize efficiency and speed in trading.